Lawsuits

Merrill accuses industry rivals of conspiring with a group of former employees to remove confidential client information and trade secrets for the formation of a new RIA.

Attorneys and other compliance experts say it's important that financial advisors greet any type of negative feedback with a thoughtful response — especially if it could turn into a legal matter.

In its third suit in as many months, JPMorgan is accusing a former advisor of using its banking referrals to build a book of business and then trying to abscond with those clients to a rival firm.

Raymond James accuses the widower of an advisor of using data stored on his wife's company-issued computer to solicit clients for a rival firm.

Errors and omissions policies may not represent the most exciting aspect of launching an advisory firm, but experts say custodians often require firms to purchase this and other insurance.

Also this month in our disciplinary digest, a frequent CNBC analyst is sentenced to five years in prison for defrauding investors, and a former Fidelity advisor faced charges after borrowing millions from clients.

Recruiters say firms routinely cover advisors' lost deferred compensation in offer packages. Those deals are complicating efforts by advisors who contend they're still owed backpay.

Stanley Tulin and his wife, Riki, say they were deprived of more than $19 million by a scam run by their former investment advisors. And JPMorgan, they argue in a lawsuit, could have prevented the whole thing.

The mega bank had tried to resist going before FINRA arbitrators by arguing its brokerage unit wasn't involved in an $8.4 million fraud scheme. The victim and a federal judge disagreed.

A group of former Ameriprise brokers argue they had no say in a court agreement requiring them to hand over their cell phones and other devices to a third-party forensic examiner.

The win for Morgan Stanley comes after a recent string of victories against brokers who left for rival firms. But as the outcome in the JPMorgan case shows, firms don't always prevail.

Chuck Roberts, whose recommendations of structured notes landed the St. Louis firm a nearly $133 million arbitration award, was kicked out of the industry after ceasing to cooperate with a regulatory investigation.

Morgan Stanley had gone to the Second Circuit Court of Appeals to fight a lower court's finding that its deferred compensation policies fall under federal retirement law.

Many former college athletes will receive large lump sums, and current players face new NIL guidelines that come with large, officially sanctioned payments.

In separate cases, two federal judges found that neither Wells Fargo nor LPL had a fiduciary obligation to look for clients' best interests with uninvested cash held in brokerage accounts.

Now at Wells Fargo, Matthew McCrea is accused of violating a nonsolicitation agreement he signed at JPMorgan. The suit echoes allegations JPMorgan made days earlier against a broker now at Morgan Stanley.

Laura Sullivan stands accused of accessing confidential customer data and violating a nonsolicitation agreement by bringing along at least 15 client households.

Experts say that there are pitfalls, rules and procedures that departing financial advisors should know. Problem is, too many act first and consult lawyers later.

The decision comes as a victory for FINRA in a series of legal assaults meant to undercut the authority of self-regulatory organizations.

Regulators discovered Julie Darrah had been siphoning millions from elderly clients after WEG bought her practice in 2021.